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Taiwan's application to GATT: Significance of multilateralism for an unrecognized state (China)

Posted on:2000-02-27Degree:Ph.DType:Dissertation
University:University of VirginiaCandidate:Cho, Hui-WanFull Text:PDF
GTID:1466390014464417Subject:Political science
Abstract/Summary:
Applying regime theory and multilateralism, this dissertation tries to answer two core questions. Why did Taiwan become eager to rejoin GATT when it seemed to benefit from the free ride it was getting? And why was it hopeful about the GATT bid when it had been able to retain membership in only a few IGOs?; The study revealed that Taiwan had a dual trade regime up to the mid-1980s. While its exports enjoyed a nearly free-trade environment, its imports were protected by high tariffs and import controls. Its ability to retain such a dual trade regime was greatly facilitated by GATT norms in helping developing economies and by bilateral arrangements of beneficial multilateral status. In short, Taiwan was outside GATT yet benefited greatly from its norms. The situation was reversed when Taiwan's protectionist practices faced great American and European criticism in the early 1980s. Taiwan was forced to open up its domestic market and liberalize its trade practices. Gradually, Taiwan began following GATT rules without sure GATT benefits. When the comparatively small Taiwan became a big trader, the asymmetry between it and its trading partners began to play against Taiwan. Bilateral arrangements grew too costly and disadvantageous, and Taiwan thus sought rescue in the multilateralism of GATT.; By stipulating that “a government” acting on behalf of “a separate customs territory” may accede to GATT, the functional-standing clause opens the door for an unrecognized state such as Taiwan to join GATT.; Following a new policy of “flexible diplomacy” and dropping the dogmatic baggage of “no coexistence between the loyal and the traitorous,” the ROC government seized the opportunity offered by GATT when it started actively to pursue participation in international organizations in the late 1980s. The precedents of Taipei/Beijing co-membership in other IGOs and NGOs also support the hopefulness of Taiwan's GATT bid.; The research further suggests that other functional international organizations may adopt similar functional-standing clauses in order to expand their representation and enhance their function, while allowing unrecognized states such as Taiwan to be treated as “they are.”...
Keywords/Search Tags:Taiwan, GATT, Multilateralism, Unrecognized
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